tv The Willis Report FOX Business July 29, 2013 6:00pm-7:01pm EDT
melissa: that's all the money that we have in a minute. we will see you tomorrow. how the shows report is next. gerri: hello, everybody. i'm gerri willis. taxpayers about to get stepped again. this time obamacare used as a bailout for bankrupt cities. also, union leaders still fast-food workers to go on strike. what is really behind the effort to get 15 dozen dollars an hour for flipping burgers. and it is money-saving monday. the simple tricks to get the best air fares this fall. we're watching out for you tonight on "the willis report". ♪
gerri: the bankrupt motor city detroit has found a way out of its sky high health care costs for public service workers. obamacare. according to he new york times detroit is considering pushing its younger retirees on to the obamacare exchanges to release some of the pressure of the 5 billion the city as a retiree health costs. sticking it to you, the taxpayer. with more on this, president of the american action forum. i don't know how many times i talked about the unintended consequences of obamacare. this pretty much stops the mall. what. gerri? >> this is a case of unintended consequences. obamacare is average pilot subsidies. anybody in financial trouble is going to try to find a way to get their hands on the subsidies here is an ingenious way for a bankruptcy to say health care is no wonddr our problem. now over to the exchange's. you know, they are free and clear.
gerri: but we are not. that is what makes me so mad. listee to this, treasury secretary jet blue over the weekend to me says, the federal government is not going to get involved. we're not going to bailout detroit. that is not really true. >> they are involved. there is no way around it. you and i had this conversation before. there's some much money on the table. these exchanges, any employer would be perfectly reasonable to stop providing health care, send workers off. they can get insurance that is just as good or better and they can get a raise. the cities of fighting at the same thing. if you get a bankruptcy to making use the banker said report. if you can negotiate, that's great. the only loser in this is the american taxpayer. gerri: here's what he actually said. listen to this. >> detroit economic problems, a longtime in developing. trying to work through how they approach the issue spirited defense of the questions between detroit and its creditors that
is really something they're going to have to work out with its creditors. gerri: workout with its creditors, but the end of the day it's going to be on our backs as taxpayers. here is the real threat. i mean, detroit, yes to mombasa chicago. and cities and municipalities considering an obamacare bailout. detroit, chicago, stockton, the list goes on. like a snowball rolling downhill here. it spells disaster not only for obamacare by taxpayers. what could the cost b? >> the cost could be enormous. already spending two and a half trillion of the first full ten years of obamacare. imagine instead of having 30 million new workers in the expansion we have something that looks like 40. another 30%. the cost is staggering. what is interesting is the first person to put their finger on this is a democratic governor, former tennessee governor. early in the debate he said we
have seen this in tennessee. is not going to work out well and now here we are. gerri: but look at this. these numbers were really interesting. they say 94 retiree health plans in 61 cities are underfunded. here's the deal. you find to the degree it you can't pension benefits. health care benefits are largely unfounded hopes. only 6%. the vast majority, we have no idea why we're paying this, hoping that somebody comes along and tells us out. why at the end of the day should these cities get some kind of help, assistance? they are actually being given a big fat gift year. >> it is a huge gift. irresponsible for them to make these deals was a with public-sector unions and say, how rich benefit for your pension, rich benefit for retiree health and then not find them. they made a commitment, but the taxpayers on the hook. they should put the money away
and they haven't another federal taxpayer will end up picking up the ball. gerri: adding insult to injury. more doctors are saying they're going to opt out of medicare. they're not going to give services. they don't like the way tbeing y can do better on their own. this used to be the kind of thing that only a few doctors did to my now more and more of them are opting out. people will say that they cannot get care. what will be the impact on obamacare going for? >> it is going to hit medicare and the obamacare recipients. they're going to have plenty of business. you call -- cover people, subsidized health care. it will go use the doctors. it is going to drive up prices. reimbursements will look even worse. we will see more and more doctors decide to get out of the medicare provision business. gerri: maybe somebody was a conversation with might give me some advice. the future does not look good.
>> it is just a reminder that health insurance policy means nothing. medicaid and medicare. the need to be will see a doctor how. gerri: good to see you. >> thanks. gerri: we told you about detroit. trying to pull a fast one on taxpayers. now on to fast-food workers demanding in bigger paycheck. fast-food workers in major cities are on strike to protest minimum wages. with the help of union is demanding $15 per hour to flip burgers. more than double the federal minimum wage. here to weigh incoming director of financial regulation studies for the cato institute. welcome. agassi you. protesting. new york, detroit, chicago. really big cities. let me tell you, if we helped everybody you could not afford with their living, salaries of were not up to snuff, everybody would be getting some kind of benefit here. >> and that is absolutely the
case. the biggest driver of that is housing costs. just as outrageously expensive to live in some place like san francisco or new york. dressed jeanine aftermath the minimum wage workers are in the south, many of which live in fairly affordable areas. highly unusual to work fast fade and be paid minimum wage. again, it is really the cost of living in the city's. gerri: only two-thirds of workers are part-time. i was looking at the tail numbers. over four and a half% of hourly workers are paid minimum wage. 5% of hourly workers, not all workers, paid minimum wage. really talking about a small proportion of workers. who -- now 725, who is this for? >> and that's a good thing to keep in mind. half the minimum wage workers are under 25. two-thirds are part-time. only 3 percent of workers are over the age of 25 or minimum-wage workers.
the third of them don't have a high-school degree. a very small percentage said at a year. stay in high-school. my first job was working in a burger king. i never expected that to be my career and did not go into it thinking that it would be. really was an opportunity to charter inside money and learn valuable job skills and then move on. think about that we want to encourage people to spend their 30's and '40's flipping burgers, is that really what we want as a society? gerri: and face it, the burgers are going to be more expensive. here is the wage battle as it shapes up. they want $15 per hour. the federal minimum wage is $7.205. illinois, $8.25, michigan $7.40. you mentioned that this is not meant to be a ways to use support a family on.
it is an entry-level wage. once every 1-2 years. should it be increased? what would happen to the economy? the minimum wage was doubled effectively to $15 per hour. >> i think you would see less people employed. we have seen since 2010 the number of people working at minimum wage has fallen by over 800,000. as we raise the minimum wage, less people working minimum-wage certainly we all accept that if you make a minimum wage of $50 or $100 you would have nobody working in that area. again, a fairly significant unemployment. you're basically taking the bottom rungs of the job ladder and really making it difficult for people to get coat. i'm curious to know how these protesters are actually restaurant workers and not the astroturf protesters were they hired thomas people for some minimum wage to protest. gerri: to make a good point.
the unions are behind that. they have organized the strike all over the country. there the ones who are helping to unionize. what is their aim? >> that is the ultimate objective. where we have seen the decline, the target for a number of years really has been the service sector. that has been because there is so much turnover and workers, minimum wage workers and service of workers. templar's the toilet of you redt makes it far easier to unionize. this is all about trying to rebuild the union ranks. gerri: thank you for coming on. interesting story. $15 per hour of the murder. now we want to know what you think. here's our question. should burger flippers make $15? we have more and more coming up.
a warning from the fda over a popular item in that may be in your medicine cabinet. important information that you need to know. and how do you do that? talking to your mom or dad are in the older relative about critical decisions like when to stop driving or make money decisions. they're is a right way to do this and we will tell you how. ♪ ♪
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♪ gerri: the fda warning consumers not to buy a popular vitamin. the government says that the supplement made by a healthy life chemistry contains potentially harmful substances. several reports of illnesses prompted the fda to make the move. with us now, dr. kevin gamble, professor of medicine. dr. kevin, thank you for coming back. what is the problem with this? >> so this actually contains anabolic steroids. these are the same stair rods that are found illegal supplements that weightlifters and other athletes have been using in the past. the problem is that the company that makes these bills did not put these on a label. first of all, they are illegal and secondly they did not label
them. the fda requires that supplement companies actually put everything on the label that is in the can. that is the only regulation that there is. gerri: any time you buy one of these vitamins, supplements, you are told that it will appeal was something specific. what is this supposed to do? >> they build vitamins as energy builders and boosters. they are important in the way that cells manage energy and break down foodstuffs. they're important interests. it is rare that you need to take supplements like this. probably they put the steroids in there so that they could actually show growth in muscle mass and things like that. gerri: you're kidding. i have never even heard of this. so, you know, what does it do to people? what is the bat of fact, the downside? is it like taking steroids and you get all cranky and angry?
>> it really is. in fact, there can be very significant defects. liver damage, the roy damaged. from then you can have and the tests. for many bit too tough for women become infertile. it is a lot of bad side effects that are significant. the same thing you see in weightlifters that illegally use steroids for competition. gerri: a lot of patients for complaining of the kinds of reactions that. what happened? >> one of the common symptoms you might find is muscle aches, fatigue, malaise. one particular physician has been referred about 25 patients with the same symptoms. being a good investigator, he came up with the common link in all these patients. the f.d.a. investigated. gerri: require that some of this information be on the label so
that we can at least when it. >> you know, the only requirement that the fda has for supplements is that everything there has to be on the label. these has violated the law. for other madison, the pills that your doctor prescribes a medical devices, there is a rigorous certification program. we have to do clinical trials the show that the drugs are safe and effective before they can even though the market. maybe the fda needs to consider looking at some of these types of regulations in supplements as well. gerri: all right. don't buy it. thank you for coming on. appreciate your time. >> thank you. gerri: all right. up next, how you do that, giving advice to our elders, especially when they don't want to your. and life imitating hollywood. an estimated $135 million in jewels stolen from his posh hotel. police now on the hunt for real life pink panther. ♪ peace of mind is important when you're running a successful business.
♪ gerri: talking to your mom and dad or other elderly relatives about critical lead changes can be difficult, especially when it comes-health and money managers. how do you have the heart-to-heart conversation? joining me now, author of how to say it to seniors. closing the communication gap with our elders. thank you for coming on the show. i think this topic is just so
important. i note there are things. why is it so tough to talk to seniors about the money and health issues? >> that is a question that we asked ourselves 20 years ago when we began studying this very question. personally and professionally and all of our middle-aged and bummer friends having the same kind of struggles. we started to look it that. our thought was there was not much to know about the psychology of aging of older adults. it was pretty obvious. we take a look and of course we are wrong. a clear blind spot. very incomplete information about them. gerri: let's talk about that because as you get older the way you communicate is really quite different. i think people and younger generations did not understand that. you might be patient with your children or young people.
when it comes to talking to the elderly to my the patients might go away. >> i think it will become frustrated because the communications style is different. our work we identify we think is the psychological agenda, the final phase of life. two very important development task spivvy the first one is maintaining control.domineering. secondly to create a legacy in the world where time is running short. the idea of having a legacy of the end of your life in the armor is critical. we felt that these two tests of what the communication get help. otherwise her communication, a very impatient and short. we wanted to do we wanted to do. can't figure out what they will cooperate. gerri: mistakes for a second. whether the other mistakes that people made?
>> the biggest mistake is a failure to acknowledge and offer the fact a you understand control is a big deal and no life. without that acknowledgement that feel like they're fighting for everything. every suggestion even though helpful becomes an affront and they become hypersensitive and pushed back in don't want to talk anymore. first of all we have to acknowledge that the control is important. hopefully we don't take away the control. gerri: control is the. an important issue and you want to make sure that you are acknowledging that they want to be in charge. that makes perfect sense. talk to me a little bit about the issues. a great list. the issues that you should be confronting and working to iran thinking about. >> well, you're talking about the actual top picks of the strategies? >> the topics. health, where well i live, what do i do about health care? these are big issues that take
quite a bit of planning. goodness, you need to be able to communicate and have a dialogue with your elderly mother or father or relative. >> i think when it comes to health someone has to take charge of the health situation. very frightening. we don't understand what's going on. organize all the help of reviews. almost like a translator. so it's hard to make choices if someone does not take charge and be able to do that. secondly, the issue of health and the basic question of how much health care do of what, how far well want to go, how much precision. someone being able to help to make those, it's very difficult to choose. gerri: one of the issues that i have confronted in my life is where the live. you know, sometimes you want to get parents out of the single-family homes and maybe into assisted living and you want to persuade them.
you don't want to force them to go. how do you persuade them that a change might be the right thing? >> i think we talk about two different types of control. the immediate control. long-term control way things might be better. someplace else or with help at home. and the idea began as a dialogue . it will be complicated. we don't want you to fallen wind up in assisted living or in skilled nursing care. less talk about ways that we can modify and bring help in. then sometimes a conversation. they say, well, maybe staying here is not the right idea. the have to begin with the fact we understand your choice. the short term joyce's one thing. a long-term choice where you can maintain. gerri: money is a big issue. can be difficult to even get access to see the kind of reserves that a parent might have. they may not want to show you because of a control issue. how do you get them to open up
about their financial situation? >> money is personal. a lot of resistance to revealing the amount of money that they have to their adult children. we say two other adults, the issue of planning for your finances when it comes down to two things, plan and preserve choice. present choices we golan. we don't want to maximize the amount of choice. secondly, if you plan and things fallout of control and you look back and say i had a chance to make a better choice but i didn't, i think choice and control, those kinds of words, they resonate with the developmental task. it is not of one conversation kind of deal. we have the conversation where people year you, resonate, and you're able to come back. gerri: it is never a one conversation kind of deal. thank you for coming on. it was great to talk to you. your information. difficult topic. we appreciate it.
>> take care. gerri: u.s. well. it is time now for a look at some of the hot stories tonight. higher mortgage rates are putting a damper on the housing market. the number of americans buying previously on homes fell last month. higher borrowing rates are staring up buyers. the canadian parent company of hudson bay, the price tag. thirty-two saks fifth avenue stores and 66 stores throughout the country. amazon is hiring 5,000 new workers. closer to customers so that they can get back is quicker. get this. new electric car. the bmw says the new car will go 100 miles of will charge. the company's first mass-produced electric car. the price under 40,000 but will
now authorities are looking insists is a leaked to some of the most audacious guesses in criminal history history, the pink panther. joining me now a former jewel see if from america's most meritorious tool robber. icahn not think of a better guess. thank you for helping us out. what about this heist? >> definitely professionals. they had to have some inside knowledge to do this for five minutes, come in the side door and get out and nobody got hurt which it all points to be the inside job. ggrri: wow! i'm so there was a guy with a gun with people standing around happening in broad daylight and we all ask the question how can you get away with that? you think somebody who works
with the company had to be helping? >> will there are issues going on even with the hotel. it has been getting hit so it could be food-service they know when people are coming and going. this man walked in and walked out with 136 million in diamonds. gerri: unbelievable. what is in your head? you used to do this. you walk into a place like that in broad daylight with a gun to think i will get out with $136 million. no problem. what is the mindset? >> that is great. it is a professional mindset you're not a drug addict or just going in to do drugs or a smashing grab these are professionals there has to be more than one person involved. a little most major they
will find a car pretty soon in the near future and maybe they will get some dna off of that but these guys are good. there is the inside to this and the pink panther gain one of those just get out of prison a few days ago. gerri: they escaped. >> i don't know all the details but even if they did that and that is one issue of itself. what happened here they had this plant, they knew when to go and when to get the money now whether 50 million or 136 million committee one is retail or one is a wholesale but they will get through it they will get rid of it. i did it. i did $50 million. it is in my book you can
read how i did it. gerri: we had experience with security because they were on our said and what you to hear what they told us. >> i love the diamonds. they're absolutely gorgeous. i appreciate you to bring them in a guest you'll notice i walk away? >> yes. they had a security guard on the set that means we have a security guard on the set but you cannot protect yourself against every eventuality? if everybody is planning and cognizant of how you operate at the end of the day the losses are mounting. >> there is a lot of security things i think were missed wide the kit was the inside job. when you have large sums or suitcases they have the electronic device if it gets away from a certain distance
the person who was holding it gets shot. they knew where to go, five minutes, how to get out. the planning was a good. gerri: how were you caught? >> by good police work the fbi got a license plate number when i was not doing the jewish star was actually at but that is part of the investigation how deeply will go. just a random person got my license plate number to sell me a ring and they would trace that back to be another person on the rental car so they really did their homework. they will. you know, with the money is the insurance company.
gerri: did you for coming on the show it is interesting point of view and great to hear your story. you have gone straight. thank you for your time. >> i love to help young people and we keep them out of jail. thank you for having me on. gerri: coming up next we're giving you the best deals in the new survey says cash is king but should it be? we will see what the financial panel house to say about that. [ male announcer ] eligible for medicare?
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is are they cheaper? >> as we hit the fall season prices could drop between 25 and 35% it is about kids going back to school and everybody saying away from applying it is a great time to fly. gerri: wonder your favorite times to fly? biggest timeframe early september through mid october those six weeks are the best combination of weather, price and not being too crowded those that like to go disney this is the best time to go i try to take two trips during that time frame to skip over the summer craziness. gerri: i was flying this week and you would of thought it was christmas. the airport was packed it is much nicer to fly when other people do not. where do you go?
where are the cheapest flights? >> we do a survey at the price points right now the three that are the cheapest include denver, a great place to go, a boston and minneapolis. also washington d.c. is in that category. gerri: it is a decent list of course with your competition also. >> we just don't have competition anymore. gerri: what about a broad? >> if you go overseas like the atlantic ocean the typical destination end is islander germany or spain in this year we added that we were surprised about which was scandinavia with denmark with the cheapest prices remember you look for prices at around 800 and $900 range
that is a lot cheaper than the summertime tickets that are closer at $1,100. gerri: what is the cheapest day to fly? >> sought to weaken oas fly and save money on tuesday when stare saturday those are the three slowest-- see may have the empty seat have the weekend rates if you fly monday to thursday and o v20 or $40 cheaper you will save half the savings but when you pay for the tickets that tuesday monday with the timeframe is the best time to do it.
gerri: thank you for helping now. some of the most common travel mistakes and how to avoid them. number five, not leaving enough connection time between flights usually the least of our half member for booking a cheaper hotel away from everything getting a hotel in the middle of the action is cheaper in the long when ftc transportation fees. number three, trying to do too much if you visit paris or london spend at least three days you will need that time. number two, don't book the hotel just because the pitchers looked great online it is a good idea to call the hotel to see if you're getting what you expect. number one, wasting your time to go to the time share sales pitch to be will not buy. it is your vacation. in joint.
wealth report i will start with you does this surprise you? i was shocked. >> it doesn't because investors get confused they don't know what to invest in to see a big volatile move so they hide in the cash. said right now there probably should have cash because stock valuations are high but over the long term that is a bad news because inflation will eat that up you may have the same amount of dollars but you lose purchasing power. gerri: i want to show the results. cash, a 26% real estate 23% coulter and other precious metals fifth is the number four? this is no way to invest for the long term? >> no. it is very misguided it shows a lack of
understanding there were some death differences but that the public is still shellshocked you need to have the long-term plan away from cash. gerri: i know well educated folks who feel the same way those you'd expect to be sophisticated investors and i am shocked here we are five years after the crash and we're still talking about being upset about the stocks. what do you think? >> it is inevitable we had such a great time this year i piggery i don't think there hurts but long term it is not a quality investment you'll want to invest in something you know, will erode in value. >> normally it is the
opposite? they come in at the tail end and they get hurt but they have not done that yet. let's talk about the federal reserve to talk about how the president will pick somebody to replace bernanke who would be best for individual investors? >> i think somers is the most likely to get the post he has a lot of real world experience as a former treasury secretary off but i do think as larry has more real world experience to help him. gerri: some make the point of janet does not get that job then they are sexist. >> i don't know about that but she has tremendous experience for she will get
the post is a perfect transition from the vice chair to the chairmanship. up id she would be most favorably by a the markets in she is more bullish did she caught the market off guard by questioning the of quantitative easing but it brings more uncertainty to the market i think president obama although he may no summers better has a history to promote women. gerri: there is a lot of those connections from wall street and concerned he may be too close. what do you say to that? >> i agree that is what i think there is a good shot to be an upset because nobody wants to be associated with somebody behind the repeal of glass-steagall plus that close relationship at the end of the day it will make
for some good campaign rhetoric so i think people want to stay away from that republicans and democrats. gerri: we have to wait until we get an answer but in the mint -- the meantime they will talk of their candidate. the of ising there rates high is what people like is real-estate. what do you say to that? is this a good way to take advantage of those rates? they are well below the all-time high for real-estate. >> sometimes the focus on the rate the houses have appreciated if you look at the grand blanc -- the grand scheme of things the affordability factor is unprecedented and still very affordable. i am very bullish on real-estate right now.
gerri: what about you? >> we are optimistic they think this will slow things down but this is a multi-year trend it is still very good. gerri: a little technical issues there. ladylike to continue? >> this is still a good time to be in real estate with a multi-year trend that will continue to improve we have a long way to go from the five-year period that is the improvement to come and it is a good time. gerri: we will be right back and the answer to the ♪
gerri: finally it is the worst, financial advice ever stay in cash. yes, stock market is risky but putting your money in a shoe box is worse. tonight we talk about a new survey by our friends at bank rate.com that said a quarter of us prefer cash as a long-term investment. real estate in second, gold third, stocks next. it is understandable why people are so scared of the stock market. the financial crisis caused so much pain, but sitting on cash is more painful, you are losing money. with inflation and 2% range, cash is slowly eaten away, we need to make our money work, i love real estate and i love , there are a lot ofe what is options that can make you money grow. keep you comfortable with your investment and retirement.
thanks for joining us, dvr the show, if you can't catch us live, have a great night. lou: good evening thank you for being with us, obama administration, that has spit on its promises of openness and transparency how in second term added a new element to its little bittal behavior. obama administration is looking for a fight. and as many fights as they can find. treasury secretary jack liu hit sunday show circuit with ultimatum for republicans if president obama do not get his way on the upcoming budget and debt ceiling battles, he will not negotiate. here is liu drawing the president's line in the sand, and kicking sand in the